First Half of FY2012 ended September 30, 2011 Financial Results Presentation November 16, 2011 Keihan Electric Railway Co., Ltd. (Tokyo Stock Exchange 1st / Osaka Securities Exchange 1st Securities Code: 9045 http://www.keihan.co.jp/) [Notes on forecasts] Descriptions of business forecasts and future prospects are based on current information and certain assumptions about factors that may affect future business. The actual results of operating performance may differ from these forecasts. OverviewOverview ofof thethe FirstFirst HalfHalf ofof FY2012FY2012 FinancialFinancial ResultsResults Consolidated Statements of Income (Millions of yen) 2011/05 2010/09 2011/09 Change Main factors of changes Estimate 1,790 Transportation -2,371, Real estate +1,651, Retail +1,704, Operating revenue 121,087 122,878 120,000 (1.5%) Leisure and service +501, Others -10 (564) Transportation -796, Real estate +368, Retail -102, Operating income 9,218 8,654 7,000 (-6.1%) Leisure and service -151, Others +69 Non-operating income -128 (741) (Dividends income -20, Miscellaneous income -82) Ordinary income 7,094 6,353 4,300 (-10.4%) Non-operating expenses +48 (Interest expenses -89, Miscellaneous expenses +111) (156) Extraordinary income +484 (Contribution for construction +396, Net income 4,093 3,936 Gain on sales of investment securities +251) 2,500 (-3.8%) Extraordinary loss +286 (Loss on reduction of fixed assets +353) (331) EBITDA 17,841 17,509 EBITDA ：Operating income + depreciation － (-1.9%) Depreciation 8,622 8,855 232 － (2.7%) [Changes in scope of consolidation and application of the equity method (from the previous year end)] Consolidated subsidiaries: 36 companies (No changes) New: 2 companies KB Enterprise Co., Ltd. (The company merged Keihan Bus Service Co., Ltd.) Kyoto Century Hotel Co., Ltd. (Acquisition of shares) Eliminated: 2 companies Keihan Bus Service Co., Ltd. (The company was merged with KB Enterprise Co., Ltd.) Keihan Financial Management Co., Ltd. (The company was merged with Keihan Electric Railway Co., Ltd.) Equity method affiliates: 2 companies (No changes) 2 Consolidated Balance Sheets (Millions of yen) 2011/03 2011/09 Change Main factors of changes Cash and deposit -12,365 Current assets 132,791 122,444 (10,347) Notes and accounts receivable -4,444 Land and buildings for sale +3,819 Property, plant and equipment +15,760 (Newly-purchased buildings, etc.) Fixed assets 473,437 493,516 20,079 Intangible fixed assets +2,362 Investments and other assets +1,955 Total assets 606,229 615,961 9,731 Current portion of bonds -9,922 Current liabilities 176,890 161,959 (14,931) Short-term loans +1,611 Bonds +20,339 Long-term liabilities 292,985 316,706 23,720 Long-term loans +3,654 Total liabilities 469,876 478,665 8,789 Retained earnings +2,656 Net assets 136,352 137,295 942 Valuation difference on available-for-sale securities -1,833 *Equity capital ratio 21.9% (-0.2pt) Total liabilities and net assets 606,229 615,961 9,731 Interest-bearing debt at end Bonds +10,417 310,269 324,680 14,411 Loans payable +5,266 of interim period Long-term accounts payable -1,272 *Interest-bearing debt: Loans payable + bonds +short-term bonds + accounts payable for Japan Railway Construction, Transport and Technology Agency (JRTT) 3 Consolidated Statements of Cash Flows (Millions of yen) 2010/09 2011/09 Change Main factors of changes Income before income taxes -542 Operating cash flows 10,652 7,680 (2,972) Income taxes paid -2,556 Changes in inventories +1,063 Purchase of fixed assets -6,728 Investing cash flows (18,551) (29,104) (10,552) Purchase of investment securities -4,036 Proceeds from issuance of bonds +20,022 Changes in short-term loans +7,477 Financing cash flows 1,719 9,045 7,325 Redemption of bonds -9,604 Repayment of long-term loans -8,449 Net increase (decrease) in cash (6,179) (12,379) (6,199) and cash equivalents Increase in cash and cash equivalents resulting from 12 13 1 merger with non-consolidated subsidiaries Cash and cash equivalents 22,829 14,381 (8,448) at end of interim period 4 Segment Information (Millions of yen) 2010/09 2011/09 Change Change (%) Operating revenue 121,087 122,878 1,790 1.5 Transportation 48,551 46,179 (2,371) (4.9) Real estate 20,238 21,890 1,651 8.2 Retail 45,604 47,308 1,704 3.7 Leisure and service 12,011 12,513 501 4.2 Others 661 650 (10) (1.6) Elimination (5,979) (5,663) 315 － Operating income 9,218 8,654 (564) (6.1) Transportation 4,287 3,490 (796) (18.6) Real estate 3,679 4,047 368 10.0 Retail 813 710 (102) (12.6) Leisure and service 583 432 (151) (25.9) Others (150) (80) 69 － Elimination 6 53 47 － 5 Results of Transportation (Millions of yen) 2010/09 2011/09 Change Change (%) Remarks Railway operation 39,224 (-393) Operating revenue 48,551 46,179 (2,371) (4.9) Bus 12,662 (+372) Taxi － (-2,071) Railway operation 3,200 (-801) Operating income 4,287 3,490 (796) (18.6) Bus 146 (-210) Taxi － (+64) ・Sales of taxi business as of October 1, 2010 ・Bus business: Effect of revenue increase resulting from merger with non-consolidated subsidiary 443 million yen << Operating results for transportation (Keihan Electric Railway) >> Number of passengers Passenger transportation revenue (Thousands of people) (Millions of yen) Change Change 2010/09 2011/09 Change 2010/09 2011/09 Change (%) (%) Commuter passes 70,439 69,417 (1,022) (1.5) 8,195 8,062 (133) (1.6) Non-commuter passes 72,144 71,846 (297) (0.4) 16,928 16,770 (157) (0.9) Total 142,583 141,264 (1,319) (0.9) 25,123 24,832 (291) (1.2) 6 Results of Real Estate (Millions of yen) 2010/09 2011/09 Change Change (%) Remarks Real estate 16,691 (+913) Operating revenue 20,238 21,890 1,651 8.2 Construction 5,577 (+1,045) Real estate 4,268 (+497) Operating income 3,679 4,047 368 10.0 Construction -23 (+82) <<Results by business>> Operating revenue Operating income Change Change 2010/09 2011/09 Change 2010/09 2011/09 Change (%) (%) Real estate sales 9,103 9,449 345 3.8 308 589 280 90.9 Real estate leasing service 6,674 7,241 567 8.5 3,461 3,679 217 6.3 Total 15,778 16,691 913 5.8 3,770 4,268 497 13.2 <<Main condominium buildings for sale>> <<New leasing properties>> Sales Number of Name Location Name Acquired date Location amount units sold Keihan Midosuji Building September 2010 Chuo ward, Osaka city Bijours Biwako 2,754 95 Otsu city, Shiga Eishin Building April 2011 Chiyoda ward, Tokyo The Kourien Tower 715 35 Neyagawa city, Osaka Mikami Building June 2011 Setagaya ward, Tokyo Yawata city, Kyoto Fine Garden Square 607 41 Kyotanabe city, Kyoto Toranomon 5 Mori Building August 2011 Minato ward, Tokyo Fine Residence Nishiarai 557 16 Adachi ward, Tokyo * Keihan Electric Railway acquired trust beneficiary rights of Keihan Midosuji Building and Mikami Building. Grand First Senri Momoyamadai 522 24 Suita city, Osaka 7 Results of Retail (Millions of yen) 2010/09 2011/09 Change Change (%) Remarks Department store 25,653 (+2,044) Store 13,998 (-586) Operating revenue 45,604 47,308 1,704 3.7 Shopping mall management 5,705 (+375) Restaurant 3,437 (-163) Department store -46 (-226) Store 265 (+79) Operating income 813 710 (102) (12.6) Shopping mall management 390 (+25) Restaurant 91 (+19) ・Shopping mall management: October 2010 Attraction of FOREVER21 (Commercial building in Shibuya ward, Tokyo / Previous HMV Shibuya) << New properties >> << Sales of department store >> << Sales of store >> (Millions of yen) (Millions of yen) Name Opening date Location Sales Sales Store amount Change Division amount Change Keihan Department Suminodo Store October 8, 2010 Daito city,Osaka Moriguchi 11,486 (301) Store 6,087 (393) Fushimi ward, Store SWEETS BOX Tambabashi Store September 24, 2010 Kyoto city Convenience Kuzuha Store 4,863 128 store 3,007 (7) Hakodateichiba AEON Mall Kyoto Ukyo ward, Kyoto Kyobashi April 21, 2010 3,602 (113) Kiosk 447 (58) Hana Store city Store Station business 3,938 (164) Kita ward, Osaka Hirakata Store 3,171 99 SWEETS BOX, LUCUA Osaka Store May 1, 2011 city Miscellaneous Suminodo revenue 517 38 Store 2,226 2,226 Total Miscellaneous 13,998 (586) revenue 302 4 Total 25,653 2,044 8 Results of Leisure and Service (Millions of yen) 2010/09 2011/09 Change Change (%) Remarks Hotel 9,945 (+514) Operating revenue 12,011 12,513 501 4.2 Leisure 2,639 (-73) Hotel 259 (-53) Operating income 583 432 (151) (25.9) Leisure 271 (+5) << Hotel occupancy rates >> 2010/09 2011/09 Change Remarks Kyobashi 88.7% 93.3% 4.6pt Temmabashi 73.9% 81.4% 7.5pt Kyoto 91.8% 91.4% (0.4pt) Hotel Universal City Keihan 76.8% 76.7% (0.1pt) Universal Tower 70.4% 75.6% 5.2pt Asakusa 85.8% 84.9% (0.9pt) Sapporo 84.6% 88.5% 3.9pt Biwako Hotel 73.2% 79.1% 5.9pt Kyoto Tower 94.6% 90.4% (4.2pt) Kyoto Century Hotel － 88.8% 88.8pt July 25, 2011 Acquisition of shares 9 Non-consolidated Statements of Income (Millions of yen) Change 2011/05 2010/09 2011/09 Change Remarks (%) Estimate Operating revenue 38,370 37,481 (889) (2.3) 36,900 Number of passengers -0.9% Railway operation 26,727 26,414 (313) (1.2) Passenger transportation revenue -1.2% 26,200 Subsidiary business 11,643 11,066 (576) (5.0) 10,700 Real estate sales 3,394 2,376 (1,018) (30.0) 2,300 Real estate leasing service 6,674 7,241 567 8.5 6,900 Leisure 1,573 1,448 (125) (8.0) Number of visitors in Hirakata Park -11.0% 1,500 Operating income 7,442 6,809 (633) (8.5) 5,820 Railway operation 3,582 3,073 (508) (14.2) 2,620 Subsidiary business 3,860 3,735 (125) (3.2) 3,200 Real estate sales 205 37 (168) (82.0) (300) Real estate leasing service 3,461 3,679 217 6.3 3,400 Leisure 193 19 (173) (90.0) 100 Non-operating income +369 (Reversal of provision for loss on guarantees